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Federal Court's decision in Samson Maritime v Aucote

In Samson Maritime Pty Ltd v Aucote
(the 'Aucote decision'), the Full Federal Court held that the Seacare scheme
applies to all 'employees' (as defined by the Seafarers Rehabilitation and Compensation Act 1992 (Seafarers Act))
of a trading, financial or foreign corporation.

The Aucote decision has substantially shifted workers'
compensation and work health and safety arrangements in the Australian maritime
industry. Ships and employees that were historically considered to be covered
by state workers' compensation and work health and safety laws are now covered
by the Commonwealth's Seacare scheme.

In response to the Aucote decision, the Government introduced
the Seafarers Rehabilitation and
Compensation and Other Legislation Amendment Act 2015 (Amendment Act) into
Parliament. The Seacare Authority and Minister also granted exemptions and
declarations affecting the coverage of the Seacare scheme.

These actions were taken to provide certainty to maritime
industry participants over the coverage of the Seacare scheme and state
workers' compensation and work health and safety schemes.

Seafarers Rehabilitation and Compensation and Other
Legislation Amendment Act 2015

The Amendment Act amends the coverage of the Seacare scheme
from the commencement of the scheme in 1993 until 26 May 2015 (the date of
Royal Assent). It confirms that, generally, the Seacare scheme does not apply
to employees on ships engaged in intra-state trade or commerce, as was broadly
understood to be the case until the Aucote decision, up to the date of Royal
Assent.

The Amendment Act does not disturb any claims for workers'
compensation under the Seacare scheme made before 26 February 2015 (the
date it entered Parliament). Any employees who provided notice of injury before
26 February 2015, but had not made a claim for workers' compensation by that
date, will also not be affected so long as the notice of injury was provided
for the purpose of making a claim under the Seacare scheme and they have not
made a claim for compensation under state legislation.

This restores certainty to maritime industry employers and
employees regarding past actions taken and compensation payments received under
the Seacare scheme. It will also assist with providing certainty regarding past
actions taken and compensation payments received under state workers'
compensation and work health and safety legislation.

The Minister for Employment, Senator the Hon. Eric Abetz, also made declarations
under the Occupational Health and Safety
(Maritime Industry) Act 1993 (OHS(MI) Act) (OHS(MI) Act declaration) and the Seafarers Act (Seafarers Act declaration). These declarations commenced on 26
March 2015.

These exemptions and declarations mean the coverage of the Seacare
scheme is currently limited to what it was broadly understood to be prior to
the Aucote decision. They apply to all ships that are engaged in intrastate
trade and not engaged in interstate or international trade.The exemptions and declarations together ensure
that these ships are not covered by the Seacare scheme and are instead covered
by state legislation, as had been understood to be the case prior to the Aucote
decision.